4 Steps to Take if You Want to Buy a Home Soon
Is home ownership in your future? If your goal is to buy a home within the next six months or sooner, it would be best to start arranging your finances now! So, instead of jumping straight to the house hunt, let’s review some essential items to prepare you for buying a home.
Check Your Credit Report
Preparing your credit score and financial history are critical components of mortgage qualification. With AnnualCreditReport.com, consumers can receive three free credit scores per year, one from each of the main credit reporting bureaus. Once you have received your report, review it for any inaccuracies or errors, and if necessary, take steps to improve it.
Take these steps right away to get your credit in better shape:
- Always pay bills on time.
- Avoid applying for new credit cards.
- Dispute any inaccuracies on your credit report.
- Pay off any debts possible.
Build Your Savings
You may have already started saving if you have set the goal of buying a home. In competitive housing markets, some buyers may benefit from a larger down payment. But don't assume you have to put down 20%. Certain programs, such as those available to veterans and first-time home buyers, allow some people to make smaller down payments.
Home buyers usually have a downpayment at the forefront of their minds, but don’t forget it is wise to have funds set aside for unexpected emergencies and repairs that may arise with the new home as well.
Get Pre-Approved Before Searching
Never begin home shopping without a pre-approval in hand! A pre-approval helps you define your housing goals and shows potential sellers that you are serious about purchasing their home.
Once you've decided on a lender, you should request a preapproval letter, which details how much you might be able to borrow. Unlike a prequalification letter, a preapproval letter informs the seller that lenders have reviewed your finances and confirmed that you qualify for a loan, giving you an advantage over buyers who can't prove that they will get financing. The lender may verify your income, check your bank statements, and pull your credit in order to obtain this letter.
Interview Real Estate Agents
Hiring a real estate agent who looks out for your best interests will make the home-buying process much easier. Investing the time to interview a few agents can make a significant difference in your transaction, so select someone who will support your goals, work within your budget, and provide expert guidance.
Inquire about potential real estate agents' backgrounds, knowledge of your desired area or neighborhood, and fees.
Bottom Line
Don’t put off preparing for your first (or next) home purchase, it is in your best interest to start taking these steps now! When you get to the point of seeking guidance from a Realtor, you won’t be disappointed in our team at 316 Realty Group. Our Realtors have a vast knowledge of the greater Houston, Dallas/Fort Worth, Austin, & Waco markets and care for our clients like family.
Are you ready to have a conversation about your next home purchase? Reach out today!
4 Reasons Why You Should Home Shop in the Winter
The spring and summer months are typically the busiest for home purchases. And for good reason: warm weather makes open houses, home inspections, and moving more appealing.
But what about in the winter? While it is true that things slow down during the winter, that is not necessarily a bad thing. If you are looking to buy a home, the season benefits you in particular! You could even say that winter is the best time to look for your next home. Let’s explore some of the significant benefits you may find if you choose to go house hunting in winter.
Less Competition, Less Frenzy
Less competition is favorable to both home sellers and home buyers. When there are fewer buyers to compete with, you are less likely to enter a bidding war and more likely to have your offer accepted.
More people stay inside when it's cold as well, and tend to go house hunting during the summer months. In return, you'll have an advantage and will beat out the competition if there is any.
Bidding Wars are Less Likely
Would you like to possibly save some money? During the winter, there are fewer buyers, so bidding wars are unlikely, and you can negotiate a better price.
Take your time, as the lack of competition, combined with the seller's eagerness to close, gives you the edge. They may even be willing to waive some of the contingencies in order to get you into the house or agree to your move-in date, even if it means leaving earlier than expected.
The House is Put to the Test
You probably imagine yourself pulling up to a home when it has a lush, green lawn and blooming shrubs. House hunting in the winter is a different story because you can see past the initial curb appeal that would normally have you starry-eyed.
When you are inside the home, you can witness if the windows are old and drafty and if there is poor insulation. If you have snow in your area, you can also note if there is any leaking in the ceiling. Home shopping in the winter allows you to view homes on their worst days, instead of their best, and benefits you greatly so you can know what you’re possibly getting into!
Faster Closing Times
If you do not experience inclement weather and heavy snow in the winter, (which could delay inspections and surveys), all the parties involved in the home-buying process are less busy than they would be during other seasons, from the real estate agent to the lender to the appraiser.
When you consider how many steps are involved in purchasing a home, this is fantastic news.
The Best Season is Off-Season
If you're on the fence about purchasing during the winter, consider the benefits we covered. There are also a number of factors to consider when selling your home during the winter months.
Finding a trustworthy and reliable Realtor can point you in the right direction when it comes to determining the best time to buy. It's also worth noting that buying during the winter season can mean a variety of things depending on where you live. You should not, however, be swayed by myths about the real estate "off-season." Let's talk about your needs today, we can't wait to help you find the perfect home!
HOA Communities: Pros and Cons
Are you considering purchasing a home in a community with a homeowner's association (HOA)? Make sure you understand how these organizations operate before making an offer.
An HOA is governed by a Board of Directors (homeowners elected by other residents), and it's their responsibility to set and enforce rules and maintain the grounds. These organizations are not only found in single-family home communities but in condominium and townhouse communities as well. You must also pay certain fees to live in these communities So before you start looking for a new home, you should consider whether you want to live in a neighborhood with an HOA, which comes with both pros and cons.
Pros of HOA Living
1. HOAs Resolve Disputes Between Neighbors
When problems arise, (loose pets, loud and obnoxious parties, piles of trash by the road, to name a few), a homeowner's association can help.
If you notice another resident breaking a rule or regulation, the association can act as a mediator. Rather than discussing the problem with your neighbor and causing tension in your relationship, you can contact your homeowner's association, which will contact the neighbor on your behalf.
2. HOAs Have More Social Activities
Streets with an HOA often have a stronger sense of community than your average neighborhood. This is due to the fact that having an HOA encourages a sense of community. Not only do HOA meetings will help neighbors to get to know one another, but they also give greater opportunities for social events.
It wouldn't be out of the ordinary to see block parties and social gatherings on your street from time to time. It's also easier to connect with neighbors when you start sharing amenities like a pool, tennis courts, or a golf course. If you like meeting people and socializing, an HOA could be right up your alley.
3. HOAs Maintain Property Values
In HOA communities, homes, and common areas are consistently cared for and well-maintained because residents are held accountable to deed restrictions. Property values are heavily influenced by this maintained curb appeal.
A well-kept home in a well-kept neighborhood is what attracts many home buyers to live in an HOA. You could say this is the biggest perk for most!
Cons of HOA Living
1. HOA Fees Can be Expensive
Unfortunately, many HOA communities can be expensive to join. High HOA fees, in general, entail more landscaping, general maintenance, and amenities. However, if you don't care about having a swimming pool or a gym, these high fees would be a waste of your money.
If a home has high HOA fees, make sure to get a list of everything that's included in the price so you know exactly what you're getting and if it even benefits you personally. In addition, carefully examine your monthly budget to ensure that you can manage to pay the monthly dues.
2. HOAs Have Rules and Regulations
If the monthly fees are reasonable, paying HOA fees may not seem as bothersome. You should be aware that the HOA has rules regarding the exterior of your home, even if you're fine with the fee.
Color, type, and size restrictions may apply to your front door, shutters, and windows. Associations can even restrict your outside decor and the number of vehicles you can park. A fine may be imposed if you violate the rules and regulations of the community.
3. HOAs Can Lack Privacy
It goes without saying that you will not have a lot of privacy if you live in an HOA community with homes practically touching each other, such as a townhome, apartment, or even some single-family homes.
Those who like a rural or country lifestyle and don't want to be involved with neighbors should consider homes with no HOA. The benefit of living close to your neighbors is meeting more people if you are more social and thrive in a community.
Is a Community Right for You?
Bottomline, HOAs aren't for everyone. If you want complete privacy or the ability to change the appearance of your home, you probably won't be content living in an HOA community. However, if you want a low-maintenance lifestyle, HOA living may be ideal for you. Whatever you decide, carefully consider the benefits and drawbacks of HOA living.
As a final point, don't forget the importance of working with an experienced and knowledgeable Realtor. We look forward to assisting you on your home-buying journey!
3 Common Mistakes to Avoid When Buying a New Construction
The idea of a new construction home sounds appealing to many people. New construction homes provide endless customization options and the opportunity to truly make your own personal touches In a brand new home, you won't have to worry about old, stained carpets or old appliances; instead, you can select what best suits your family's individual tastes.
While choosing your favorite brick, paint, and countertops may be exciting and seem pretty simple, the buying process for new construction homes can be quite challenging without any prior experience and knowledge.
The good news is that following these tips for buying new-construction homes can save you money, and time. Here are three common mistakes to avoid when purchasing a new home.
Failure to Research Your Builder
Buying a new home will most likely be one of your family's largest investments in a lifetime, so it is essential that you prioritize quality, especially when it comes to the developer or builder in charge of creating your new home.
Even if you have completely fallen in love with a neighborhood and the style of its homes, you still must research your builder thoroughly. Look for reviews online, and keep an eye out for any patterns and feedback you may see, such as an excess amount of premature repairs/issues, poor workmanship, cut corners, and delayed construction.
You as the buyer can decrease your risks by doing appropriate research ahead of time, to save you both time and heartache!
Failure to Budget for Extra Costs
New builds can start as blank slates. Sure, some people may not consider it necessary to have privacy fences or gutters, but it’s only a matter of time before they realize they really dislike having a straight shot of their neighbors every time they sit on their porch, and they’ll probably be calling the gutter company after that first hard rain that creates trenches in the new lawn all around their home!
If you build in a community that has a Homeowner’s Association (HOA), you’ll want to read over the rules carefully. Make sure you set aside the expenses ahead of time to take care of any loose ends to be in compliance with the HOA. After all, nobody is excited about getting a letter from their Homeowner’s Association during the first week in their new home!
Failure to Work with a Realtor
There are most definitely some differences between buying a pre-owned home and a new construction home. As a result, unless you are an extremely experienced buyer, it is critical to have proper representation and take precautionary measures throughout the purchasing process of a new build.
It is of utmost importance and in your best interest to hire a Realtor before visiting potential locations and the property sales office. You always want your Realtor present to represent you properly! A Realtor will work to ensure that you are set up for success from the start, handling communications, disclosing the benefits and drawbacks of the property, and may even be able to help you negotiate lower costs.
Bottom Line
Purchasing a new construction home has significant advantages. However, there are numerous pitfalls, so buyers should exercise caution at all times and have the assistance of a real estate professional throughout the process. Before signing off on your new home, carefully consider all of the advantages and disadvantages of new construction.
What You Should Know Before Buying a Foreclosure
Who doesn't want to save money when they're ready to buy a house? A foreclosed house can appear to be an attractive option. There is no doubt that foreclosed homes sell for less, sometimes much less, than homes listed and sold on the open market by real estate agents and owners.
Unless you're a professional real estate investor, it can be difficult to purchase a foreclosed property. Some foreclosed homes have so much damage that the repairs required to make them habitable quickly deplete any savings on their sales prices. Plus, you'll be competing with others who make their living by buying, repairing, and selling foreclosures.
As you can see, buying a foreclosure can be a huge challenge. Here are some tips you should know before buying a foreclosed home…
Foreclosed Homes Come With Risks
While a foreclosure is a profitable investment, it also comes with the previous owner’s problems. Here are some of the most commonly seen problems:
Financial Risks
Outstanding debts such as back taxes and liens are frequently attached to auction properties. As a result, an otherwise desirable home may be subject to further costs. Before the buying process can begin, any outstanding debts must be satisfied.
This primarily applies to properties that are being auctioned off. Before reselling a property, banks pay off any liens attached to it.
Physical Risks
Keep in mind when buying a foreclosure that the risk may greatly exceed the potential reward.
If the home is still being occupied, it may be poorly maintained. If the people can’t make the payments, they could well be falling behind on maintenance and repairs.
Some people facing foreclosure are enraged, and they may take out their frustrations on their home before the bank repossesses it. This could mean taking appliances, light fixtures, and any other valuable pieces of the home upon departing.
Another thing to consider is if you buy a foreclosure at an auction, you won’t get the opportunity to inspect the inside, and you are buying the home sight unseen.
Foreclosures Attract Competition
When dealing with desirable foreclosed properties, increased interest and competition is unavoidable, not only from potential occupants but also from investors and professional house flippers. Foreclosed homes priced competitively can attract many offers quickly, resulting in a bidding war, which can turn a bargain into a costly investment.
Purchases of foreclosed homes quite often fall through, so you could potentially see your desired property appear back in the inventory if you check periodically.
Foreclosure Purchases Can Be a Long Process
The closing of a foreclosure typically requires additional documents to be completed. On top of that, response times between the bank and other parties involved with real estate-owned properties can be pretty slow. You may have to wait longer than you’d like after putting in a bid on a property as well, especially if the bank is processing many other requests.
If you intend to finance the purchase, you should get a mortgage pre-approval. It is likely to quicken the process.
In Conclusion
Foreclosed homes can appear very appealing on the surface. However, costs can be highly unpredictable, and underlying damage may render a property unmarketable. Some people may reconsider buying due to the lengthy process, while others may be turned away by the high demand for attractive foreclosed properties.
Foreclosures can sometimes wind up being incredible deals. With all of this being said, our Realtors at 316 Realty Group are more than willing to assist you in the process. Reach out to us today and let’s get started!
Housing Market 2022: Should You Wait?
Low inventory, fierce competition, and major price increases have impacted homebuyers since 2020, but quickly rising mortgage rates are making it even more difficult to find an affordable house. Due to the higher rates, many buyers can no longer afford homes in certain price ranges. The issue is that even basic single homes now cost the same as more upscale homes did a few years ago, so purchasers are forced to choose between waiting for additional inventory to come online or moving to a more inexpensive neighborhood. Many others are hoping for a price drop, but that may not happen anytime soon.
But if you're a prospective homeowner waiting for the market to plummet, you may be wasting your time by doing so.
It’s A Decision Personal to You
An investment in real estate is an extremely personal decision regardless of the market. After all, a home is the most expensive purchase most people will make in their lifetime, so being financially prepared is crucial. It would greatly benefit you as well to speak with a lender and even use a mortgage calculator to find out how much your monthly mortgage payments will be based on your down payment and interest rate.
Trying to time the market or predict what will happen next year is not the greatest way to buy a home. Instead, buy based on your budget and requirements. If you find a home you like in a desirable location that also meets your budget, it may be right for you. However, if you make too many concessions to obtain a home, you may wind up with buyer's remorse and feel burdened.
Buying in a Hot Housing Market
A hard fact is that you can’t return a house if you realize you overpaid for it or you don’t like it! In this market, buyers tend to make hasty decisions which can inevitably lead to buyer’s remorse.
Begin with a budget in mind and commit to sticking with it! Despite a minor increase in the number of homes for sale, purchasers are still faced with high prices and mortgage rates at the 6% level.
Again, you must consider your financial situation when buying a home. Is it financially feasible for you? Experts generally agree that for many people, purchasing and owning a home is a better financial decision than renting. It is never a bad investment if you can afford it.
Selling in a Hot Housing Market
The first step toward a successful sale is to find a real estate agent who has a vast knowledge of the area and who you know you can trust. The right agent will work closely with you to price your home competitively while addressing questions and offers from prospective buyers.
A hot market will be full of homes being sold “as-is,” and a lot of them will sell as such, but it is still a wise move to make smart and methodical decisions regarding updates and renovations. Some inexpensive moves could be fresh paint, clean staging, and organizing.
So, to Wait or Not to Wait?
There are thousands of examples out there that point to people who thought the market would come down one day, but it never did, causing them to lose years of equity. In other words, if you're waiting for home prices to significantly decline, you could be waiting for a very long time.
If you’re ready, our team at 316 Realty Group is more than prepared to assist you in the process of buying or selling, and we can form a game plan just for you. Contact us today and let’s get started!
Why Should I Buy a House in Texas?
Texas is attracting people. Its population is one of the fastest-growing in the country. In 2020, over 15% of houses sold were to out-of-state buyers! There’s no denying it, people are flocking from all over to experience what Texas has to offer. From the strong job market to the low cost of living, to the diverse culture, the list goes on. There are endless reasons people are making Texas their new home. Read on to learn more about why you should buy a house in Texas!
Strong & Diverse Job Market
The state's booming economy, which creates more than 1,000 jobs a day, makes it easy to find a job in Texas. Although the state's unemployment rate remains below the national average, many of those jobs pay well above average. Something you may not know about is all of the huge companies that have recently moved to Texas, including Charles Schwab, Oracle, Hewlett Packard Enterprise, CBRE, NRG Energy, AECOM, Tesla, and Apple!
The diversity in the job market is astounding, and there is sure to be something for everyone. The fastest-growing industry sectors are information technology, engineering, healthcare manufacturing/construction, education, business, oil and gas services, financial services, aerospace, and real estate. A recent statistic by the Texas Workforce Commission also states that Texas added 62,800 total nonagricultural jobs in April 2022, marking the sixth consecutive month of job growth!
Low Cost of Living
You will find that your hard-earned money stretches further in Texas, all thanks to s cost of living that is 8% lower than the national average (and 15th lowest in the nation!) You can expect to enjoy a higher standard of living in Texas, thanks to strong wages and lower prices for groceries.
People from out-of-state may be pleasantly surprised to find out that there is no personal income tax in Texas, which is just another reason their money may go further. This is definitely an incentive that attracts people to the great state. Nevertheless, Texas relies on property taxes, which can vary from 1% to 3.5% of tax appraised value, set by each county. There are also exemptions that can lower property taxes, such as those for agriculture, your primary residence, over 65 years old, disabled veterans, and widows.
Vibrant & Diverse Culture
The rich, thriving culture of Texas is largely due to its diverse population. There are 145 languages spoken in Houston itself, and the state of Texas as a whole has the second most racial and cultural diversity in the country (right behind California.) This proves that the typical Texas stereotypes of horseback-riding-country folk couldn’t be further from the truth!
Attractions & Activities
Whether you are a sports fanatic, an outdoor enthusiast, or a total foodie, you won’t find yourself searching to stay busy and entertained in Texas. From the Texas Longhorns to the Houston Astros, to the Dallas Mavericks, fans take their sports seriously here and there’s always a team to root for.
There are also endless outdoor activities to stay busy year-round. There is no shortage of destinations for hiking, biking, horseback riding, and outdoor dining. Whether you have a family with children or are seeking the singles scene, there is more than enough for everyone in any given town or city.
Ready to Make the Move?
We could go on forever about what makes the Lone Star state so great, but you will just have to see it for yourself! Our team of real estate professionals with 316 Realty Group are equipped and ready to assist you in every step of your move. You might be interested to know that we actually helped over 100 west coast families move to Texas in 2021!
In order to assist clients moving to Texas, we offer a seamless concierge service. Our goal is to make the transition to Texas as smooth as possible. Reach out to our team today so we can share with you all we have to offer. It is our passion to assist you in every way we can!